... is getting new tentacles! They started out as bumps closer to the center of the anemone and now some of them are quite long. I think it is probably at least 33% bigger than when I got it.

sweet. its pretty cool how something we care so much about does something like that to show us that it is worth all the hard work :)

I love seeing my tank thrive! The anemone sometimes wraps around my clown until you can't even see the fish!

picture?...

http://i47.photobucket.com/albums/f198/CarmieJo/Work219.jpg

You can see a couple of the new tentacles towards the back and right.

looks like its stretching out to prepare for a new mouth.

http://i47.photobucket.com/albums/f198/CarmieJo/Work212.jpg
To give you some perspective here is another shot that shows the relationship between the anemone and the xenia. It was taken about a month ago.
http://i47.photobucket.com/albums/f198/CarmieJo/DSC_0032.jpg

looks like its stretching out to prepare for a new mouth.

Is that a precursor to splitting?

from my experience, that is the way they react before splitting. the new tentacles will be about where the split will take place.

Is there anything I should watch for or do?

I think it has been pretty happy, it hasn't moved since I put the rock it is on in my tank.

nope. you do nothing.

OK. Stay tuned, I'll let you know if anything happens.